Larysa Gordiienko

The article deals with the technological aspects of the mechanism of formation of local budgets in Ukraine, which is an important tool for state policy, the development of administrative and territorial units, and ensuring an adequate level of living standards. On the basis of the analysis carried out by the authors, it was revealed that the mechanism of formation of local budgets does not correspond to the current trends, therefore the components of legislative and regulatory support are systematized and the potential of their use for the changes of the existing mechanism is revealed. The technological aspects of the formation of local budgets are considered, namely, the composition of local budgets is determined, and at the expense of which the local budget is formed by the legislative base. The features of the mechanism of formation of local budgets and the main organizational and technological procedures for its development are determined. The authors highlighted the main shortcomings of the existing mechanism for the formation of local budgets, namely, the absence of a procedure for forming the income and expenditure part of local budgets. It is determined that local budgets of Ukraine are more dependent on intergovernmental transfers than local budgets of EU countries, the volume of transfers and their share in the organization of local budget revenues is constantly increasing. In this work, the authors proposed measures to eliminate the problems of the formation of local budgets.